Aviation has a significant effect on the prosperity and development of the African continent. Areal transportation is one of the most efficient and cost-effective ways of delivering products, allowing the further expansion of trade. By effectively connecting foreign markets, the aviation industry remains one of the cornerstones of international relations. Aviation also helps tourism, as many more people can travel and visit the country to bring more money to its businesses (African Business, 2015). By making use of the technology and the benefits associated with it, Africa can secure its role as a global supplier. Investing in aviation can further be beneficial for the country’s industrial development as better routes for trade facilitate more innovation. Business relations also profit, as operations become more efficient. Air services in Africa have a lot of potentials, which are currently limited by restrictive policies and regulations that are unable to effectively adapt to the needs of the modern world. Liberalization in this vein is an important force Bringing better air connectivity, trade, and traffic to the African continent. By adjusting the African approach to air travel and trade. Of the continent can find another way of quickly rising to the competition of the global powers. A study has been conducted to show the benefits of less restricted aerial trade in Africa and this review will focus on analyzing them to understand the whole range of benefits, the procedure can give. This study sought to analyze how an increase in the liberalization of the aerial industry leads to better connectivity within Africa and better profitability for the continent.
A gravity model was used to analyze the benefits of liberating the air of 12 African countries from different parts of the continent. It is predicted that changes to the African aerial services can bring a large selection of benefits to the individuals and tourists visiting the continent (InterVISTAS Consulting LTD, 2014). Liberalization can increase the connectivity of Africa, provide better convenience and save time, as well as make fare costs more affordable. The benefits to Africa are also great, improving the situation in the job market and the economy itself. By introducing better aerial services, the changes open up new job possibilities in the industry and allow the Continent to receive tourism revenue which is estimated to be around $1.3 billion. The increase in employment and revenue is projected to be a great asset to the GDP of the countries involved. As shown by previous lateralization efforts Between South Africa and Kenya, the process can increase the traffic between countries, and further improvements to the costs and legislation of the matter show a lot of potential for being profitable to the economy. It is important to note, however, that liberalization efforts do have some detriments to their implementation. It is noted by the research of the current liberalization efforts that weaker carriers can face significant competition and push back in the process, making them obsolete (Impact of Liberalization). Furthermore, airlines are facing the process of consolidation, aware bigger players on the market are becoming even stronger, wiping out their smaller counterparts. Both of these processes can be detrimental to the well-being of African communities and the aviation industry in general, but certain steps can be taken to prevent them from becoming too much of an issue. Eliciting government funding and support to help smaller carriers stay afloat and be able to face the competition, maybe an adequate approach to this dilemma.
References
Impact of Liberalization. (n.d.). Web.
InterVISTAS Consulting LTD. (2014). Transforming intra african air connectivity. Web.
African Business. (2015). Open Skies Will Allow Africa to Take Off. Web.